) lines along with assembly lines in its Tirupati factory in Andhra Pradesh to expand production by December end, the company’s promoter said on Wednesday.
“We already have six SMT (surface-mount technology) lines in our Noida factory and we plan to add four more by December end in Tirupati plant which will enhance enhance our capacity to 3.3 million units per month as compared to existing 2.2 million units,” Sudhir Hasija, promotor of the UTL group and Chairman Karbonn Mobiles told ET.
The company is also expanding its Noida complex which in total will generate close to 3000 direct jobs in the coming three months, he added.
UTL Neolyncs along with four other domestics handset manufacturers Lava, Padget Electronics, Bhagwati (Micromax) and Optiemus Electronics was approved by the Central government to avail incentives under the production-linked incentive (PLI) scheme on Tuesday. Global companies Samsung, Foxconn units Hon Hai and Rising Star, Wistron and Pegatron were also approved.
UTL said it will utilize the proceeds of the scheme to strengthen Karbonn’s product portfolio to make it a globally competitive brand.
“We would like to thank the government for giving Indian brands another chance for revival as all Indian brands had taken a backseat due to the Chinese onslaught for the last few years,” Hasija said.
“Our strategy is to increase focus on research and development to make better quality smartphones equally competitive to Chinese rivals for the Indian market as well as exports.”
The Bengaluru-headquartered company currently has three manufacturing facilities in Tirupati, Andhra Pradesh, Greater Noida, Uttar Pradesh and Bawal, Haryana. UTL makes Karbonn and Gionee phones and set-top boxes for Reliance Jio.
With the expansion of the Noida complex, the company aims to first fulfill manufacturing capacity needs of Karbonn phones, a part of which is currently outsourced from Padget Electronics (Dixon).
“I don’t think getting orders for contract manufacturing should be a problem once the market normalizes…initially, our focus is on making all Karbonn phones in-house,” Hasija said.
The PLI scheme offers an incentive of 4% to 6% on incremental sales of handsets over a base year i.e FY19-20. The cleared companies are expecting official communication from the government on their approved production targets and beginning date of the Scheme.